Exam 15: Managing Service Inventory

The strategy of maintaining a speculative inventory is known as forward hedging.

Taxes and insurance would fall under _____ costs.

An inventory model with quantity discounts has all of the following features, except:

In the "Newsvendor Problem", the underlying concept is that the newsvendor should continue increasing the stock until the expected loss on the last sale ______ the expected revenue on the last unit stocked.

In retailing, profit is a function of mark-up multiplied by turnover. Multiple Choice

Equating the annual holding and ordering costs can be used to derive the EOQ formula.

In the annual cost curve for the EOQ model, the ordering cost _________ with the order quantity

A continuous review system is generally used for Class C items in the ABC system of classification.

Which feature below is not associated with the periodic review system?

Information management has been the key in allowing services to meet customer demands without incurring the expense of excess inventory.

Inventory management is concerned with two basic questions: how much to order and when to place an order.

Penalties for late delivery or nondelivery are part of shortage costs.

The elimination of paper-based documents between organizatins is made possible by:

Service level influences _______ and ________.

For an electronic super store using the ABC inventory classification system, ________ would fall in class A.

When a quantity discount is offered, the first step should be to compute:

Which one of the following concepts is not associated with the news-vendor problem?

Obsolescence is part of shortage costs.

Lead-time inventories are stocks that have been ordered but not yet received.

Inventory management costs include all but one of the following: